Investment Advisor RFP (Citrus County)


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Investment Advisor RFP (Citrus County)

  1. 1. REQUEST FOR PROPOSALS FOR INVESTMENT ADVISORY AND SERVICES Citrus County Clerk of Courts Citrus County, Florida I. GENERAL INFORMATION Citrus County, Florida (County) is currently seeking proposals from qualified firms interested in providing investment advisory services for approximately forty million dollars ($40,000,000) of the County’s investment portfolio. From time to time the County may also request that the Investment Advisor provide services for investment of bond proceeds. The County desires to contract for services from a firm registered with the Securities and Exchange Commission (SEC) under the Investment Advisor’s Act of 1940 who will act in a fiduciary capacity for the County and present performance numbers in accordance with the CFA Institute. The Investment advisor will be required to manage the funds in accordance with the laws of the State of Florida, the County’s investment policies and procedures established by the County. 1. It is the County’s intent for the principal to be constantly reinvested utilizing nationally recognized performance benchmarks for short, medium and long term portfolios. The County encourages all prospective investment advisors to examine this RFP carefully. Qualified advisors, as defined below, are requested to submit proposals to provide the services described in this RFP. The County expects its investment advisor to be highly experienced, a leader and innovator in the management of investments, and is able to provide comprehensive investment advisory, services. The firm selected as the investment advisor and its affiliates will be restricted from selling to the County, any securities from that firm’s own inventory or account. Additionally, they will be restricted from buying from County, any securities and placing same in the firm’s own inventory or account. The investment advisor will also be restricted from placing into the County portfolio any securities for which it, or an affiliate, is the issuer (i.e. CD’s, etc.). The investment advisor shall act solely in a fiduciary capacity for the County and shall not receive any fee or compensation based upon the purchase or sale of securities but, rather, the investment advisor will be compensated pursuant to the provision of its contract with County.
  2. 2. II. PROPOSAL PROCEDURES A. SCHEDULE OF PROPOSAL Issue RFP 10/25/06 Final Date for Receipt of Inquiry’s 11/8/06 Proposals due 11/15/06 Oral Presentation, if necessary 11/27 – 28, 2006 Award by Clerk 12/4/06 B. ADDITIONAL INFORMATION Inquiries regarding this RFP shall be in written form only. Inquiries may be mailed, e-mailed or sent by overnight courier. All inquiries must include contact person, address and facsimile number. Responses to questions will be provided to all prospective offers. Questions should be submitted to: Sarah C. Koser, CPA, CPFO, CGFO Finance Director Citrus County Phone :(352) 341-6449 Fax: (352) 341-6458 e-mail : C. PREPARATION OF PROPOSAL Proposals should be prepared simply and economically, providing a straightforward, concise description of capabilities to satisfy the requirements of the RFP. Emphasis should be on completeness and clarity of content. All costs associated with the preparation of a proposal will be born by each proposer. D. NUMBER OF PROPOSAL One (1) original and Three (3) copies of the proposal should be submitted. E. SUBMISSION OF PROPOSALS The proposals should be sent to: Betty Strifler, Clerk of the Circuit Court Attention: Sarah C. Koser, Finance Director 2
  3. 3. 110 N Apopka Ave Inverness, FL 34450 All proposals must be delivered to the above office on or before 11/15/06 at 2:00 p.m. Eastern Time. (Proposals received after the above date and time will not be considered.) The County is under no obligation to return proposals. The envelope containing the proposal should clearly be marked on the outside with “Request for Proposal for Investment Advisory Services”. F. TIME AND LOCATION OF PROPOSER'S PRESENTATION Selected proposers may be requested to make oral presentations. Those proposers will be notified to arrange specific times. The County will not be responsible for any cost associated with the preparation of the proposer’s presentation. G. EFFECTIVE PERIOD OF PROPOSALS All proposals must state the period for which the proposal shall remain in effect. Such period shall not be less than 120 days from the proposal due date. H. RIGHT OF REJECTION BY COUNTY Notwithstanding any other provisions of this RFP, the County reserves the right to award this contract to the investment advisor that best meets the requirements of the RFP, and not necessarily, to the lowest bidder. Further, the County reserves the right to reject any or all proposals prior to execution of the contract, with no penalty to County. I. CONTRACT NEGOTIATIONS After a review of the proposals, and possible oral presentations, the County intends to enter into contract negotiations with the selected investment advisor. These negotiations could include all aspects of services and fees. J. AWARD OF CONTRACT A proposer to whom a contract is awarded shall be required to enter into a written contract with County in a form approved by legal counsel for County. This RFP and the proposal, or any part thereof, may be incorporated into and made a part of the final contract. County reserves the right to negotiate the terms and conditions of the contract with the selected proposer. K. CONTRACT TERM It is the intent of the County to award a contract for an initial three (3) year period with the option to renew it for a two year period for a possible total of five 3
  4. 4. years. The decision to renew the contract will be at the sole discretion of the Clerk. III. MINIMUM QUALIFICATIONS To be considered by the County, proposing investment advisors must: • Have a minimum of five years of experience in managing fixed income assets for state and local governments. • Currently manage at least $3 billion of domestic fixed income assets for public organizations. The firms own funds will not be counted as public funds. • Assign an account manager to the County who has a minimum of ten years experience in public funds investment management in Florida. • Be familiar with all applicable Florida statutes with regard to qualified investments for public entities. • Be registered with the Securities and Exchange Commission under the Investment Advisor’s Act of 1940. • Be financially solvent and appropriately capitalized to be able to service the County for the duration of the contract. • Have Errors & Omissions and Fiduciary Liability Insurance coverage of at least $5 million. • Adhere to the Code of Professional and Ethical Standards as described by the CFA Institute. IV. SCOPE OF SERVICES Specific responsibilities of the selected investment manager will include, but not be limited to the following: A. Manage on a daily basis the County’s separate investment portfolios pursuant to the specific, stated investment objectives. Place all orders for the purchase and sale of securities, communicate settlement information to the County staff and assist in coordinating security settlement. B. Serve as a general resource to the County staff for information, advice and training regarding fixed income securities, investments, and Treasury operations. C. Provide monthly statements on investment activity, earnings and the value of the investment portfolio. These reports must include a mark-to-market valuation 4
  5. 5. as required by GASB 31 and 40. The selected investment manager must maintain accurate reports of investments including the diversity of investments and compliance with applicable investment policies of the County and Florida Statutes. D. Provide quarterly investment reports including a description of market conditions, investment strategies employed performance and suggested changes to investment strategy. The performance numbers shall be presented as required by the CFA Institute. E. The investment advisors WILL NOT provide custodial services or security safekeeping. V. REQUIRED INFORMATION A. Firm Background 1. Describe the organization, date founded and ownership of your firm. Has the firm experienced a significant change in organizational structure, ownership or management during the past three years and, if so, please describe. 2. Describe any other business affiliations (e.g., subsidiaries, joint ventures, “soft dollar” arrangements with brokers). 3. Identify the types of accounts primarily managed by your firm. 4. Does your firm have an office in the State of Florida and describe the staff in the Florida office? 5. Is your firm a registered investment advisor under the Investment Advisor’s Act of 1940? Please attach Part II of your most recent Form ADV. 6. Describe any SEC, NASD or any other regulatory censure or litigation involving your firm during the past five (5) years. 7. Summarize fidelity bond coverage, errors and omissions, employee dishonesty, fiduciary liability insurance, or other fiduciary coverage your firm carries. 8. Provide a copy of your firm’s most recent audited financial statement. 9. Does your firm adhere to the Code of Professional and Ethical Standards as described by the CFA Institute? B. Experience 5
  6. 6. 1. Describe your firm’s experience in managing investment portfolios for public funds and governmental entities including any relevant experience managing public funds in Florida. 2. Summarize your assets under management (public funds only) over the past five years by the following categories: short-term, medium-term and long-term non-operating and non restrictive funds. Also, please separate these asset totals by Government Institutions and Other Institutions. 3. What is your firm’s experience in developing investment policies and portfolio management guidelines for government funds? 4. Does your firm act as a broker or as a primary dealer in securities or receive any other form of additional compensation (including soft dollars) for client transactions aside from the direct fee paid by clients? 5. Provide five client references (public references) including client name, contact personnel, address, phone number, length of time you have managed their assets and a list of any other related services provided (e.g. cash flow analysis, etc.). C. Personnel 1. Provide a summary organizational chart showing your proposed project team including analytical investment and research staff, other decision support and back office support. Identify the primary contact and describe the roles of each key person. 2. Provide detailed resumes for all key investment professionals who will be directly responsible for the investment of the County’s funds. Include the following information; title, number of years at your firm, total number of years of experience, professional designations or licenses. 3. Describe your firm’s activities to keep portfolio managers informed of developments relevant to the management of local government funds. D. Investment Management Approach and Discipline 1. Describe your firm’s investment management philosophy. 2. Describe the investment program you are proposing for the County, including the type of securities you propose to purchase, how the funds will be managed after the initial investments are made and how you will provide liquidity. 3. What are the primary strategies employed by your firm for adding value to portfolios (e.g., market timing, credit research, etc.)? 4. Describe how investment ideas are originated and how researched, and how the ultimate investment decision is made. Explain how investment decisions are then implemented, monitored and evaluated. 6
  7. 7. 5. Describe your firm’s research capabilities and resources. Does your firm assign credit research to specialists for public funds accounts? 6. Provide your firm’s intermediate-term investment (0-3 year) performance for the most recent five years. Please show annualized quarterly returns, gross of all management fees. All performance numbers must be presented in accordance with the CFA Institute. 7. Briefly describe any additional feature, attributes or conditions, which County should consider in selecting your firm. E. Accounting and Reporting 1. Describe the investment accounting and reporting system used by your firm and if it complies with CFA Institute standards. 2. Describe the frequency and format of reports that you would provide to County (including the methods and formulas used to calculate yield and performance). Sample reports should be included. 3. What performance benchmark would you suggest for the County’s portfolios given the current investment policy requires a short-term and a long-term benchmark? F. Fees 1. Provide the fee schedule that would apply to this account. 2. What expenses, not covered by the fees, are expected to be paid by the County? 3. Provide a sample of a proposed contract for your firm’s services. 7
  8. 8. SWORN STATEMENT PURSUANT TO SECTION 287.133(3)(a), FLORIDA STATUES, ON PUBLIC ENTITY CRIMES THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICIAL AUTHORIZED TO ADMINISTER OATHS. 1. This sworn statement is submitted to [print name of the public entity] by [print individual's name and title] for [print name of entity submitting sworn statement] whose business address is and (if applicable) its Federal Employer Identification Number (FEIN) is . (If the entity has no FEIN, include the Social Security Number of the individual signing this sworn statement: .) 2. I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. 3. I understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes, means a finding or guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, nonjury trial, or entry of a plea of guilty or nolo contendere. 4. I understand that an "affiliate" as defined in Paragraph 287.133(1)(a), Florida Statutes, means: 1. A predecessor or successor of a person convicted of a public entity crime: or 2. An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. 5. I understand that a "person" as defined in Paragraph 287.133(1)(e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with 8
  9. 9. the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. 6. Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. [indicate which statement applies.] Neither the entity submitting this sworn statement, nor any officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, nor any affiliate of the entity, has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent proceeding before a Hearing Officer of the State of Florida, Division of Administrative Hearings and the Final Order entered by the Hearing Officer determined that it was not in public interest to place the entity submitting this sworn statement on the convicted vendor list. [attach a copy of the final order] I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN PARAGRAPH 1 (ONE) ABOVE IS FOR THAT PUBLIC ENTITY ONLY AND, THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE CALENDAR YEAR IN WHICH IT IS FILED, I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE PUBLIC ENTITY PRIOR TO ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STATUTES FOR CATEGORY TWO OF ANY CHANGE IN THE INFORMATION CONTAINED IN THIS FORM. [signature] [date] STATE OF COUNTY OF Subscribed and Sworn to )or affirmed) before me on by [date] 9
  10. 10. . He/she is personally known to me or has presented [name] as identification. [type of identification] [Notary's Signature and Seal] Print Notary Name and Commission No.Form PUR 7068 (Rev. 06/11/92) 10
  11. 11. Truth – In – Negotiation Certificate The undersigned warrants (i) that it has not employed or retained any company or person, other than bona fide employees working solely for the undersigned, to solicit or secure the Agreement and (ii) that it has not paid or agreed to pay any person, company, corporation, individual or firm other than its bona fide employees working solely for the undersigned or agreed to pay any fee, commission, percentage, gift or any other consideration contingent upon or resulting from the award or making of the Agreement. The undersigned certifies that the wage rates and other factual unit costs used to determined the compensation provided for in the Agreement are accurate, complete and current as of the date of the Agreement. This document must be executed by a Corporate Officer. By: ___________________________ Title: ___________________________ Date: ___________________________ 11
  12. 12. DRUG FREE WORKPLACE CERTIFICATION If identical tie bids exist, preference will be given to the vendors who submit a certification with their bid/proposal certifying they have a drug-free workplace in accordance with Section 287.087, Florida Statutes. The drug-free workplace preference is applied as follows: IDENTICAL TIE BIDS: Preference shall be given to businesses with drug-free workplace programs. Whenever two or more bids which are equal with respect to price, quality, and service are received by the State or by any political subdivision for the procurement of commodities or contractual services, a bid received from a business that certifies that it has implemented a drug-free workplace program shall be given preference in the award process. Established procedures for processing tie bids will be followed if none of the tied vendors have a drug-free workplace program. As the person authorized to sign this statement, I certify that this firm complies fully with the following requirements: 1. This firm publishes a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against employees for violations of such prohibition. 2. This firm informs employees about the dangers of drug abuse in the workplace, the business’s policy of maintaining a drug-free workplace, any available drug counseling, rehabilitation, and employee assistance programs, and the penalties that may be imposed upon employees for drug abuse violations. 3. This firm gives each employee engaged in providing the commodities or contractual services that are under bid a copy of the statement specified in subsection (1). 4. In the statement specified in subsection (1), this firm notifies the employees that, as a condition of working on the commodities or contractual services that are under bid, the employee will abide by the terms of the statement and will notify the employer of any conviction of, or plea guilty or nolo contendere to, any violation of chapter 893 or any controlled substance law of the United States or any state, for a violation occurring in the workplace no later than five (5) days after such conviction. 5. This firm imposes a sanction on or requires the satisfactory participation in a drug abuse assistance or rehabilitation program if such is available in the employee’s community, by any employee who is so convicted. 6. This firm will continue to make a good faith effort to maintain a drug-free workplace through implementation of this section. (Vendor’s Signature) (Firm Name) _____/_____/_____ (Date) 12